The COVID-19 pandemic has caused the stock market across the globe to plummet. Investors are valuing the security property investment is offering and looking to take advantage of opportunities while interest rates and lending is more lenient.
Property in Australia was expected to see an upward trajectory, however due to the current pandemic this has slowed the results many were expecting. On the positive, the Reserve Bank lowered the interest rate to 0.25% and have suggested that the interest rate is going to remain low for the next three years. Additionally, property is a stable investment that will see gradual growth and with the Rand/AUS Dollar exchange, your money will see immense growth over the years.
The economic foundation
There is no denying that Australia has a much more resilient economy than South Africa’s. Their economy is diversified and is underpinned by macroeconomic policies, sturdy institutions, world trading ties. Their foundations have allowed them to respond to global challenges more effectively. Having achieved 28 years of economic growth, the COVID-19 pandemic will slow economies across the world, including Australia’s, but from past experiences we know that this economy has the ability to bounce back successfully.
Changes made for COVID-19
Like South Africa’s government, Australia has cut interest rates and changed policies to help businesses, individuals and families cope during this moment of crisis. Australia has introduced a second package to aid the economy worth AUS$66.1 billion. This includes the likes of tax measures such as the temporary ‘Boosting Cash Flow for Employers’ offering which will provide a tax-free payment, as well as the ‘Coronavirus SME Guarantee Scheme’ to support SMEs to get access to working capital. There are numerous actions taking place to further lessen the impact of the COVID-19 pandemic.
The Australian property market is still a positive investment if you are looking to safeguard your wealth abroad.